Persimmon homes to stop building new houses...

ramellous1

glen8,

My next door neighbour is being evicted next month cos the new build house he is renting is being repossesed due to the landlord not paying the mortgage. Mind you, renting a £140k house at £500/month with little prospect of capital appreciation for the forseeable future was always a bad business. If it's happening next door it is probably happening thousands of other places. I reckon this is the catalyst for the steep slump we are now getting.

glen8

^^^ agreed 100%

Just wait for all those fixed rate deals to expire. Due to lower house prices they won't have enough equity to get another mortgage so will be forced to pay the banks SVR

I can see lots and lots of repossessions soon....that alone will bring house prices down...can you see the snowball effect

Jimuth

Big Persimmon build going up near us...

http://www.rightmove.co.uk/viewdetails-19275758.rsp?pa_n=2&tr_t=buy

This development is massive locally. Wonder what the deals will be on these in a few months? Or indeed, what happens should Persimmon really hit the wall.

Is it just me, or does the showroom lounge remind you of being inside a massive humbug?

glen8

that showroom is YUK!!!

dannyboycey

TTMCMschine wrote: »

Interstingly, as a side note, Persimmon had net debt at the end of Dec 2007 of £656 million.

Less than 4 months later their net debt is now £1.03 Billion.


I'd say they're not doing too well.

My guess is that quite a few of these development companies will go bust this year. Personally, I'm sick of seeing these horrid, ugly developments springing up all over the place in what was once pretty countryside. People want houses, not plasterboard shoeboxes which are marketed as 'luxury executive pads'.

We keep hearing the government bang on about affordable housing, but as prices have risen, the quility of these affordable 'units' has decreased. Mark my words.... many of today's developments will be tomorrow's derelict slums and no-go areas.

glen8

dannyboycey wrote: »

My guess is that quite a few of these development companies will go bust this year. Personally, I'm sick of seeing these horrid, ugly developments springing up all over the place in what was once pretty countryside. People want houses, not plasterboard shoeboxes which are marketed as 'luxury executive pads'.

We keep hearing the government bang on about affordable housing, but as prices have risen, the quility of these affordable 'units' has decreased. Mark my words.... many of today's developments will be tomorrow's derelict slums and no-go areas.

Welcome to the future of [strike]Great[/strike] Britain

Pobby

Where I am there are a lot of unfinished developments,mainly nasty new build flats.Goodness knows what they will be sold for when completed.There has been a lot of bad publicity regarding the resale of these types of properties and the significant losses they are making.

glen8

It always amazes me that even in our small country things are so so different across the countys

The new developments in my area all look amazing...no flats, big detached plots over looking designer bricked roads. They all have landscaped front gardens

I guess it pays to live out in the sticks :rotfl:

ramellous1

glen8 wrote: »

I guess it pays to live out in the sticks :rotfl:

It certainly does. Here is the property we are in for. Take 9k plus stamp duty off the asking price.
http://www.georgewimpey.co.uk/newhomes/North+Yorkshire/TheHawthorns/Faversham/
This is about 1/2 mile from Tony Blairs' old constituency home as well.

I know it is a bad time to buy but we have to get our (very) young family settled sooner rather than later. I know I am in the NE but it is far better value than that persimmon one above and I reckon blue collar jobs pay the same everywhere.

glen8

That looks a nice house, perfect for a family